HP (NYSE:HPQ) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded HP from “strong buy” to “hold,” adding to a broader cautious analyst outlook. The stock has an average “reduce” rating and an average price target of $25.42.
• HP shares opened at $32.44 and were reported down 3.4%, despite the company exceeding quarterly expectations with $0.83 in EPS versus the $0.66 consensus and revenue of $15.68 billion.
• Institutional investors hold 77.53% of HP’s shares, while insiders have recently sold stock, including a 31,572-share sale by an HP insider valued at about $1.01 million.

HP (NYSE:HPQ - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Tuesday, Zacks reports.

Other equities research analysts have also issued research reports about the stock. Royal Bank Of Canada began coverage on shares of HP in a research note on Thursday, September 10th. They set a "sector perform" rating and a $33.00 price objective on the stock. Bank of America restated an "underperform" rating on shares of HP in a research note on Thursday, August 27th. The Goldman Sachs Group upped their target price on HP from $19.00 to $21.00 and gave the company a "sell" rating in a report on Wednesday, August 12th. Sanford C. Bernstein reiterated a "market perform" rating and set a $32.00 price target on shares of HP in a research report on Thursday, August 27th. Finally, Barclays increased their price target on HP from $19.00 to $23.00 and gave the stock an "underweight" rating in a research report on Friday, August 28th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and an average price target of $25.42.

HP Trading Down 3.4%

Shares of NYSE HPQ opened at $32.44 on Tuesday. The company has a market capitalization of $29.25 billion, a price-to-earnings ratio of 12.38, a price-to-earnings-growth ratio of 1.75 and a beta of 1.17. HP has a twelve month low of $17.56 and a twelve month high of $36.22. The business has a 50 day simple moving average of $31.70 and a 200-day simple moving average of $24.45.

HP (NYSE:HPQ - Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The computer maker reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.17. The firm had revenue of $15.68 billion for the quarter, compared to analysts' expectations of $14.44 billion. HP had a negative return on equity of 947.78% and a net margin of 4.14%. The firm's revenue for the quarter was up 12.5% on a year-over-year basis. During the same period last year, the business posted $0.75 earnings per share. HP has set its FY 2026 guidance at 3.190-3.290 EPS and its Q4 2026 guidance at 0.690-0.790 EPS. As a group, equities analysts predict that HP will post 3.23 earnings per share for the current year.

Insider Transactions at HP

In other HP news, insider David McQuarrie sold 31,572 shares of the firm's stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $32.12, for a total transaction of $1,014,092.64. Following the transaction, the insider owned 8,008 shares of the company's stock, valued at approximately $257,216.96. This trade represents a 79.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 63,144 shares of company stock valued at $1,938,521. Corporate insiders own 0.18% of the company's stock.

Institutional Trading of HP

A number of institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of HP in the second quarter worth $2,357,757,000. Primecap Management Co. CA purchased a new position in shares of HP during the second quarter valued at $545,984,000. Legal & General Group Plc purchased a new position in shares of HP during the second quarter valued at $180,689,000. Man Group plc acquired a new position in HP during the second quarter valued at $149,223,000. Finally, Deutsche Bank AG purchased a new stake in HP in the 2nd quarter worth about $140,172,000. 77.53% of the stock is owned by institutional investors and hedge funds.

HP Company Profile

HP Inc NYSE: HPQ is a global technology company that develops personal computing and printing products, services, and solutions. Its portfolio includes laptops, desktop computers, workstations, monitors, peripherals, printers, digital printing systems, and related supplies such as ink and toner.

The company serves consumers, small and medium-sized businesses, large enterprises, and public-sector organizations through direct sales, online channels, retailers, distributors, and other business partners.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.